Lack of competition key to Irish bank profits, says report
Author Ciarán Nevin said Irish banks’ net interest margins had increased significantly since the financial crisis, while declining in other EU banks
A report published by the Central Bank has found that the low level of competition in the Irish banking sector has allowed Irish banks to have wider margins and make greater profitsin the years since the financial crisis.
This comes after European Central Bank presidentMario Draghi described the Irish banking market as a “quasi-monopoly” in an appearance before the Oireachtas finance committee earlier this month.
The author of Monday’s report, Ciarán Nevin, saidthe retail banking sector in Ireland became much more concentrated during the crisis as foreign banks exited the market.
